Work Hours and Timekeeping in Israel

As a company or association operating in Israel, you will need to employ an Israeli workforce and keep track of employment hours. Timekeeping is relevant not just for keeping track of work hours in order to compile a paycheck but also for keeping track of overtime pay, sick leave, pension pay, and severance benefits. This article by our law firm specializing in Israeli labor law, will help clarify some of the issues involved in Israeli legislation regarding work hours and timekeeping..

Why Is Timekeeping Important?

Every employer has to keep track of employment hours. This thorny issue troubles employers and employees within and outside Israel. When an employee finishes their employment, whether due to quitting or being fired, the question of payroll often arises. The employer naturally tends to believe that the employee worked fewer hours than the employee claims and is thus entitled to a lesser compensation. What does Israeli labor law say on the subject? Is the employer obliged to keep track of employee work hours?

Does the Law Apply to Nonprofit Organizations?

Our law firm represents both limited companies and nonprofit organizations. While companies feel obligated to keep track of employee work hours, nonprofit associations are often more lax. However, Israeli labor law applies equally to both types of organizations. Employees of for-profit and nonprofit organizations are equally protected. The same is true for public employees, voluntary association (amutah) employees, cooperative workers, and business employees.

The Law of Work and Rest Hours

The law governing work hours and the documentation thereof in Israel is the 1951 Law of Work and Rest Hours. An employer is legally obligated to keep a registry of the total work hours, rest hours, overtime hours, overtime pay, and holiday work pay. The registry is generally intended to be mechanical, digital, or electronic (primarily for ease of use and objectivity). If a mechanical timekeeper is unavailable, the employee signs the time sheet manually every day, and the time sheet is approved by a supervisor.

Summary

Employers, whether in businesses or associations, are obligated to keep track of employment hours. It is better to use an electronic timekeeper for this purpose. If a mechanical timekeeper is unavailable, keeping track can be done by way of signature of workers and approval of a supervisor on a daily basis.